Absci 2025 Q2 Earnings Worsening Losses Amid Revenue Decline

Absci reported weaker-than-expected results in the second quarter of 2025, with revenue dropping sharply and losses widening. The company provided no guidance for the upcoming period, and the results fell short of market expectations.

Revenue
Absci’s total revenue for the second quarter of 2025 declined significantly by 53.3% year-over-year to $593,000, compared to $1.27 million in the same period in 2024. The drop was driven by the sole revenue stream from the partner program, which contributed the full $593,000.

Earnings/Net Income
The company’s net loss widened to $30.57 million in Q2 2025, representing a 23.5% increase from the $24.75 million loss in Q2 2024. On a per-share basis, the loss increased to $0.24 from $0.22 a year earlier. These results underscore continued financial challenges as the company remains unprofitable in its sixth consecutive year of losses.

Price Action
Following the earnings report, Absci’s stock price rose 2.41% in the latest trading day, 0.68% for the week, and surged 11.24% month-to-date.

Post-Earnings Price Action Review
A historical strategy of buying Absci shares after a revenue increase quarter-over-quarter and holding for 30 days has shown a positive return over the past three years, with a CAGR of 18.26%. This approach generated an overall return of 81.46%, outperforming the benchmark return of 63.20% by 18.26%. However, the strategy faced a maximum drawdown of 25.15%, a Sharpe ratio of 0.72, and a volatility rate of 32.46%.

CEO Commentary
Sean McClain, CEO, highlighted progress in Absci’s key initiatives, particularly in clinical development. He noted the launch of Phase I trials for ABS-101, a potential best-in-class anti-TL1A antibody, with interim results expected in 2025. The CEO also emphasized the potential of ABS-201 for androgenetic alopecia, with a planned Phase I/IIa trial in early 2026. McClain underscored the company’s AI-driven drug development platform and its recent collaboration with Almirall, which he described as a validation of Absci’s capabilities.

Guidance
The company did not provide specific forward-looking guidance. However, McClain expressed confidence in closing at least one large pharma partnership in 2025 and highlighted a strong cash runway extending into mid-2028.

Additional News
Within three weeks of Absci’s earnings report, several non-earnings-related news items gained attention. A new survey indicated the Union party’s decline, with the AfD now positioned as the strongest political force. In Berlin, Edeka removed *Compact* magazine from its product lineup amid political controversy. Meanwhile, concerns over rising unemployment and economic instability persisted, with job cuts accelerating across multiple industries.